One of the most important pieces of any risk management software should be its due diligence. Due diligence is the investigation or audit process of potential and current vendors and products to review their business financials, information security, and business continuity plans.
Due diligence is a critical activity that should be a part of your risk management. Vendors are not going to openly provide you with information that could be seen as their ‘dirty laundry’ and show them in a negative light. Due diligence collected on vendors is essentially an analysis performed on their business, finances and information security. Having effective due diligence for all of your vendors can help your organization make solid partnerships with the right vendors. By performing due diligence evaluations, it will provide a picture of whether the vendor is a risk to your organization by discovering something that may have gone unnoticed. For example, if they are following regulatory expectations, follow industry best practices and if they are the best vendor or if someone else might be better suited to your needs.
Performing vendor evaluations helps in the decision-making process and with ongoing monitoring. It provides you with a clear picture to gain insight into a new vendor or one you are vetting. Having all possible information about a vendor will help you make informed decisions early on and hopefully minimize any potential risk factors. Vendor evaluations will also help you better perform your ongoing due diligence needs when it comes to evaluating if the relationship is still relevant and help you think outside of the box if you need to consider a new vendor. And because the risk posed by each vendor may be constantly fluctuating, it will help you keep a close eye on areas of concern.
VendorInsight® VRM Pro offers a platform where you can create an Oversight and Policy Compliance dashboard that can be customized or configured based on your current internal policies and due diligence needs. This dashboard will show all of your vendors at a glance and if the internal policy requirements are met or outstanding. Additionally, as part of the VendorInsight® VRM Pro services, there is a dedicated team to assist. Our due diligence team will help you acquire the necessary SOC1/SOC2, financials, business continuity, insurance, and information security documents. VendorInsight® VRM Pro offers an easy solution to making sure your compliance review and due diligence needs are met by outsourcing your entire program.
Due diligence is not something that should just be done when you are bringing on a new vendor. It is an ongoing process for all of your vendors, new and old. Initial due diligence will be done when you are thinking about bringing on a new vendor. This process helps you determine and identify any risk they might present to your business and if it is strategic to your financial goals. As well, you will want to continue to do ongoing due diligence to make sure that you are constantly analyzing all of your vendor relationships for any changes. How often you perform due diligence will depend on what risk level the vendor is and if they are critical to your business. It is important to remember that things can change at any time, so you want to stay on top of those changes so there is no financial or reputational risk to your business.
Vendor Risk Management
VendorInsight® is the comprehensive resource for improving your vendor risk management program. With its monitoring and evaluation features, outsourced vendor risk management solution in VRM Pro ™, and industry-leading automation of processes, policies and workflows, VendorInsight® provides the tools to face any risk management hurdle. Request a demo today to learn more about how VendorInsight®’s vendor risk management solution can help you manage your third-party vendor relationships, maintain compliance with regulations and meet your business objective.
Request a demo today to learn more about how VendorInsight® VRM solution can help you manage your third-party vendor relationships, maintain compliance with regulations and meet your business objective.
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